Don't Just Renew — Review and Upgrade

Renewal time is not just an administrative task — it is your annual opportunity to ensure your health coverage still matches your life situation. Most policyholders simply pay the renewal premium without a second thought, missing the chance to improve their coverage, update their details, or switch to a better plan. Here are 7 critical things to check before every renewal.

1. Is Your Sum Insured Still Adequate?

Health inflation in India averages 14% per year. A ₹5 lakh plan that felt generous in 2019 may cover only half the cost of a comparable hospitalisation in 2024. Check:

  • Average hospitalisation costs in hospitals you typically use
  • Whether you have used a significant portion of your sum insured in the previous year
  • Whether your family has grown (new child, parents added to floater)

If your current sum insured feels tight, upgrade at renewal — it is easier and cheaper than buying a new separate plan.

2. Has the Premium Changed Significantly?

Insurers can revise premiums at renewal based on age-band changes, portfolio-wide loss ratios, and inflation in healthcare costs. A premium increase of 5–10% is expected. Increases above 20–25% warrant comparison shopping — it may be time to port to a better-priced plan.

3. Has Your Insurer's CSR Changed?

Check the latest IRDAI annual report for your insurer's current claim settlement ratio. If CSR has dropped below 90%, it is a serious warning sign worth investigating before committing to another year.

4. Update Your Nominee

Life changes — marriage, divorce, birth of a child, death of a nominee. Renewal is the right time to verify your nominee is current and the relationship and contact details are accurate. Outdated nominees can complicate death benefit claims in life insurance and create procedural issues in health claims.

5. Check Your NCB (No-Claim Bonus)

Most health plans reward claim-free years with NCB — typically a 5–50% increase in sum insured without additional premium. Verify that your NCB has been correctly calculated and applied in the renewal quote. If you made a claim, confirm your NCB reset is correct as per policy terms.

6. Are New Riders or Features Available?

Insurers frequently upgrade plans and add new features at policy anniversary — often at no additional cost or minimal premium increase. Common upgrades to look for at renewal:

  • OPD cover addition
  • AYUSH cover now included
  • Restoration benefit newly available
  • Mental health cover added
  • International emergency cover introduced

Call your insurer and ask specifically what is new or upgradeable at this renewal.

7. Should You Port to a Better Plan?

If you have been with the same insurer for 1+ years, you can port to any other insurer at renewal retaining PED waiting period credits. Use renewal time to compare:

  • Is a competing insurer offering better features at similar premium?
  • Has your current insurer disappointed you with claim handling?
  • Are you now interested in features your current plan doesn't offer (maternity, top-up)?

If yes to any of the above, start the portability process 45 days before renewal. Compare on PolicyStars to identify the best alternative before initiating the port.

Renewal Checklist Summary

  1. Sum insured — adequate for current costs?
  2. Premium — reasonable increase or unusually high?
  3. CSR — still above 95% for my insurer?
  4. Nominee — current and correct?
  5. NCB — correctly applied?
  6. New features — any upgrades available?
  7. Portability — is there a better plan out there?

Taking 30 minutes to run through this checklist at renewal can save you lakhs and ensure your policy is working hard for you.